Cultural Connections Improving local marketing execution through an understanding of how the Consumer Lifestyle Trends are playing out across different cultures
©The Futures Company, Bord Bia 2009
About the report • The purpose of the Consumer Lifestyle Trends programme is to deliver insight into the emerging consumer behaviours that will shape business in the short-to-medium term. • This report builds on the Consumer Lifestyle Trends to help explain the cultural context and key differences between Ireland and key export markets for the Irish Food and Drinks Industry. The development of the Consumer Lifestyle Trends within each country has been used as a basis to highlight potential marketing implications for companies wishing to target consumers in these markets. • The report explores in detail the current consumer context of Ireland and the UK and summarises key characteristics for the more secondary markets of France, Germany, Italy, Spain and US.
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Contents Section
Contents
Introduction
The objectives of the report and approach
Executive summary
Key Findings
Chapter 1
Understanding Ireland
8-13
Chapter 2
Understanding the UK
14-19
Chapter 3
Secondary Markets
20-31
Chapter 4
Cultural Closeness
32-37
Appendix
Information sources & Further Information
38-41
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Introduction •
It has long since been recognised that despite an increasingly connected world and the apparent blurring of cultures, from a marketing perspective, all countries to a great extent remain unique. Marketing practice that once played to the notion of one size fits all and the mantra of global brand consistency has softened to recognise that brands in today’s world need to show consumers that they understand their local culture and prevailing attitudes. Good business practice still demands a degree of consistency across markets to gain cost efficiencies and the ability to develop scalable innovation. The challenge for all companies is to know where to draw the line and to understand what aspects of the product and brand mix are transferrable.
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This report seeks to highlight the differences and points of consistency across a number of important export markets for the Irish Food and Drinks industry with the objective of providing guidance on where product / brand propositions may best travel or, how brand behaviour may need to change to make effective consumer connections.
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The analysis is founded on the attitudes and behaviours underpinning the Consumer Lifestyle Trends. A number sources of insight have been used to develop this analysis: – The primary source of insight used has been The Futures Company’s Global MONITOR study: an 18 country international quantitative consumer survey designed to provide a single source of trends data for the 16 year old plus population. – An in-depth understanding of broader societal drivers (including economic, political, demographic, social, cultural and technological influences) across markets. – On the ground brand and consumer behaviour observed by the The Futures Company’s global intelligence network Global Sreetscapes. (SEE APPENDIX FOR MORE DETAIL)
“Understanding relevance is the key to strategy in dynamic markets. Those [companies] that are successful…have enjoyed exceptional long-lasting market and financial success by constantly finding new sources of relevance in their markets” David Aaker Conversations with Marketing Masters, 2007 ©The Futures Company, Bord Bia 2009
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Executive summary: Key findings
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Executive summary: Key Findings: •
There a number of common cultural links between key export markets for the Irish Food and Drinks Industry in terms of how the Consumer Lifestyle Trends are playing out. Many of these links vary by market and a number of market clusters can be identified where a common marketing approach may be applicable. Key clusters are: – Anglophone Countries: UK and US. – Catholic Europe: France, Italy and Spain – Northern Europe: Germany
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Ireland in terms of common characteristics most closely links with other countries in the Catholic Europe group. However, the commonalities in some instances could be seen as barriers; the strong desire to preserve tradition and cultural heritage limit the scope of brands that use this as a leading component of their positioning (this needs to be defined in a local sense). However, the commonality of a feeling of a more full-on lifestyle is a connecting characteristic with Irish consumers. Convenience and products that simplify life are universally sought and non traditional brands (or foreign brands) may be seen as more effective at meeting this need.
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Significant opportunity exists in the Anglophone markets of the UK and US for Irish brand and products; there is a growing desire to connect with what is real in these markets. Whilst this is reflected by consumers looking to rediscover and recover their heritage, acceptance of brands and products from other cultures that have these characteristics is high.
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Executive summary: Key Findings: •
Environmental and social concerns most strongly resonate with the Anglophone and Northern European markets. There is a growing expectation that brands and products are addressing the environmental impacts they make, and it is rapidly becoming a hygiene factor that the company or brands champion a social cause.
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Northern European markets (namely Germany) stand apart on a number of notable levels. Authenticity here is important as a mark of quality: a desire for traditional German products is more through a belief that traditional forms of production provide the best outcome, rather than a desire to preserve tradition and heritage. Here Irish heritage should be leveraged as a signifier of quality.
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Chapter 1: Understanding Ireland
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Ireland Introduction Ireland has experienced rapid growth over the past decade, bringing about a sea of change in consumers’ lives. Ireland’s economy has outperformed other OECD countries throughout most of this decade bring prosperity and opportunity to the majority of the population. As markets have flourished and developed in the economic boom, the Irish consumer has become more sophisticated and marketing literate. Whilst, the recent global financial crisis has heavily impacted the Irish economy, dampening their enthusiasm and optimism somewhat, the Irish remain savvy in the way in which they approach the market place. Armed with the resource of knowledge many consumers continue to look for the best the market has to offer, albeit at a lower price.
Trend development
As Ireland has become a mature consumer society it is, therefore, not surprising that many of the Consumer Life Style trends have become well-established in Ireland. In terms of trend dynamics, the Irish most closely resemble other Anglophone markets (the UK, US, Australia and Canada), sharing common values such as self-expression and individuality. However, the Irish are in some ways more traditional in their beliefs and so also share some similarities with other Catholic countries in Southern European markets.
Mature and growing
Established and dynamic growth
Emergent and growing
Established and dynamic growth
Mature and growing
Mature and growing
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Ireland Savvy, confident and optimistic consumers in a modernizing society Rapid economic development over the past decade has transformed Ireland into a modern consumer society. This is reflected in the way many of the Consumer Lifestyle Trends are being played out. Modernisation has increased the pace of life and created additional demands on consumers’ time and energy. As in other Anglophone markets, the Irish are living increasingly fast and complex lives. To cope with new demands, consumers are seeking sophisticated strategies that go beyond buying convenience products and looking for retailers that are open for longer hours. Although, they finding time management a constant challenge, they are less stressed than other Anglophone countries and are keen to pack more into their lives. This is reflected in their desire for more choices and the fact that they are less likely than other Anglophone countries to feel that the pace of life is too busy for them. In reaction to their Life-on-the-go, the Irish are, more keenly than ever, seeking experiences that help them to decompress and enjoy life to the full. Irish consumers place great emphasis on fun and look for elements of play and escapism in their experiences. However, compared to the British, the Irish are also more willing to take part in riskier and more adventurous activities.
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76% of the Irish agree that “having fun” is important to them. 44% say, “I like to take part in activities that have an element of risk or adventure”. (Compared to the survey average of 68% and 38%, respectively). Source:Global MONITOR 2008
Ireland Savvy, confident and optimistic consumers in a modernizing society Increased spending power and enhanced self-confidence have created empowered and demanding consumers. As Professional Consumers, the Irish are sophisticated. They tend to be brand-savvy and do not rely on famous brands to discern quality. They are fairly priceconscious, place a high priority on product performance, and do not need to be considered trendsetters. However, in contrast, the Irish are more likely to seek expert opinions before making purchases and they are more interested in luxury than other Anglophone countries. They like to trade up to a more premium goods when they can.
They are smart with their trade offs, 57% agree “I like to splash out on some products and services, even if it means that I have to economize in other areas” (against the survey average of 46%). Source: Global MONITOR 2008
Aware and active in relation to health The Irish also show a high level of competence in the Quest for Health and Wellness. Like the other Anglophone countries, the Irish are increasingly concerned about modern health risks such as obesity and feel pressured to be more health-conscious. Consequently, the Irish are actively managing their health, perhaps more so than their British neighbours. They are taking control of their health and feel personally responsible for managing their wellness. Irish consumers are increasingly willing to try new health remedies, and they proactively use the Internet to search for solutions. Nevertheless, they are less likely than average to eat healthy foods or drink water (to improve their wellbeing). There is always room for improvement.
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The Irish are the most likely of all countries to “research illnesses or injuries online” (68%, compared to the survey average of 47%). Source:Global MONITOR 2008
Ireland Moving with the times and becoming increasingly globally aware The Irish are becoming more globally aware as technology penetration increases and their wealth offers them greater mobility. This is making them more aware of global environmental problems such as global warming as well as other sustainability issues. And they are more sensitive to corporate social-responsibility and ethical concerns (Making a Difference). Similar to the British, the Irish feel a sense of duty to use recycled products. They also feel increased social pressure to take personal responsibility for their actions in this area of their lives. Nevertheless, in terms of market innovation and action in this area, the Irish perhaps lag slightly behind the British.
Irish Tradition is Good Despite rapid modernisation, there remains a deep and abiding sense of tradition in Ireland. The Irish continue to value, and take pride in their heritage and culture. Keeping It Real continues to be one of the most mature and dynamic trends in Ireland. Unlike the UK, which is looking to rediscover its roots, the Irish are looking to hold onto and preserve their cultural identity throughout a period of rapid development. In a similar way to the Spanish (whose economy similarly benefited from a period of intensive investment and development after joining the European Community in the early 1980s), and the Irish are embracing change while working hard to maintain their unique traditions and way of life. ©The Futures Company, Bord Bia 2009
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Sustainable Fish Kinvara Fish products support the livelihood of the local fishermen who are committed to sustainable fishing practices.
69% of the Irish agree," I worry that aspects of our culture and traditions are being lost as the world merges into a single global culture” (compared to the survey average of 61%). Source:Global MONITOR 2008
Ireland Summary:
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Similar to the Anglophones, the Irish are living increasingly Life-on-the-go. They are moving beyond the more basic need for convenience and are looking for increasingly sophisticated solutions to better manage their personal resources. Modern lifestyles, however, are still relatively new to the Irish, and the benefits of the new currently outweigh the potential down side.
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The Irish are confident consumers who are brand-savvy, price-conscious and discerning. Unlike the Anglophones, the Irish are more likely to trade up for everyday luxury items and to consult an expert before making purchase decisions. They still need some reassurance and advice to help them navigate decisions in the marketplace.
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The Irish are actively engaged in managing their own health, using the Internet to research health interests and concerns, and they are adopting a wide range of health and wellness strategies.
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Irish consumers are becoming increasingly aware of global issues such as sustainability. They take their “green” responsibility seriously and believe that their efforts can make a difference.
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The Irish remain fairly traditional in both their attitudes and behaviours. Family values, culture and heritage continue to play important roles in Irish society. Compared to other Anglophone countries the Irish are more committed to the traditional concept of community. They seek to preserve and celebrate their roots in as many ways as possible, while remaining open to modernisation.
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Chapter 2: Understanding the United Kingdom
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United Kingdom Introduction The UK is one of the most globalised and sophisticated consumer societies in the world. Unsurprisingly, given a shared cultural and linguistic heritage, UK consumer attitudes fit most closely with other Anglophone markets, in which consumers are accustomed to a great deal of choice, and many products and services are carefully tailored and targeted to meet their needs and wants. In particular, marketplace offerings are highly attuned to the emerging trends identified by the Consumer Lifestyle Trends. In fact, the UK is the only market in which all 6 of the trends can be considered mature. UK consumers are individualistic, assertive, savvy, self-reliant and discerning. They are looking for greater control over all aspects of their lives, even though they tend to be more reserved in some of their behaviours than other Anglophone consumers.
Trend development Mature and dynamic growth
Mature and growing
Mature and dynamic growth
Mature and growing
Mature and growing
Mature and dynamic growth
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United Kingdom Self-reliant and coping with modern pressures, but increasingly concerned As one of the most economically developed and technologically progressive societies in the world, the pace of life in the UK is fast, which creates huge time and energy demands for consumers, as seen by the trend Life-on-the-go. In contrast with developing markets, convenience has become a hygiene factor. Hence, consumers are looking for strategies that will give them greater control over their busy lives. This need for control is also apparent in the way the Quest for Health and Wellness trend is being played out. Despite relatively good health, UK consumers feel societal pressure to be slim, and (as is typical for an Anglophone market) UK consumers feel an increasing sense of personal responsibility for their health. They use the Internet extensively to research health questions and concerns, and they practice a wide range of preventive health measures that are focused as much on mental, emotional and spiritual health as on physical health. UK consumers are globally connected citizens who demonstrate high awareness and concern over a range of ethical, social and environmental issues. Often, they feel guilty about not being more environmentally conscious, and many feel pressured by societal expectations to take more personal responsibility. They also recognise that science and technology cannot solve all environmental problems; it will take the combined efforts of private citizens, government and business to solve major environmental problems.
Health solutions for a fast pace of life Compeed cold sore patches have made treating cold sores simpler with these one a day invisible patches.
83% of UK consumers feel that “people have a duty to use recycled products whenever possible” (compared to the survey average of 79%). Source:Global MONITOR 2008
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United Kingdom Conservative and astute Like other advanced consumer societies, UK consumers have shifted their focus from accumulating material goods to collecting experiences. However, compared with US and Irish consumers, UK consumers are strikingly less likely to seek extreme or radical experiences. Instead, they tend to value experiences that act as an antidote to their fast-paced and stressful lives, fully immersing themselves in something different - something that allows an escape, but without the added element of extreme risk and adventure that is popular with consumers in other markets in relation to Living Life to the Full. As Smart Shoppers, the British behave much like consumers in other advanced consumer societies, but with a decidedly British accent. They are not easily seduced by luxury, exclusivity or trendiness, and they understand the trade-offs between price and quality. The British are more somber and performance-driven in their choices. However, they are also less price-sensitive than their US counterparts.
A Dining Experience Inamo is a pioneering restaurant and bar that enables consumers to control their own dining experience using the interactive table tops.
63% of UK consumers agree that “price is more important than brand” versus the survey average of 52%. Source:Global MONITOR 2008
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United Kingdom Growing consumer backlash against globalisation There is increasing evidence that UK consumers feel that old cultural traditions, values and ways of life are under threat from the forces of globalisation. The consumer backlash against globalisation and its much faster pace of life is growing. These concerns play out in the ways in which UK consumers embrace the Keeping It Real trend. Unlike the European Mediterranean markets, which are looking to preserve existing cultural norms, UK consumers are looking to rediscover and recover their heritage, and then to celebrate it. More and more, UK consumers are seeking out products that represent forgotten traditions, bear witness to the past and are made with a level of craftsmanship that seems to be evermore difficult to come by in an increasingly virtual world. As a result, this trend continues to rapidly grow versus other markets despite being mature. Similar to many other Anglophone markets, authenticity is aspirational in the UK, and many consumers are willing to pay a premium for products that offer them an element of heritage, history and superior craftsmanship. These products are seen to offer an anchor point in a fast changing modern world.
Traditional Sweets Hand made traditional English sweets by Miss Hope and Mr Greenwood.
50% of UK consumers say, “I like buying products that have a sense of history or tradition about them” compared with a low of 36% among German consumers. Source: Global MONITOR 2008
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United Kingdom Summary: •
UK consumers are time and energy deficient but have learnt to stay in control of these pressures in recent times. To cope, they are interested in sophisticated solutions that go beyond convenience, such as simplification and outsourcing, and allow them to make the most of their time.
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UK consumers are self-reliant and are beginning to take responsibility for safeguarding themselves against modern health risks. They are also adopting a wider range of preventive health measures and doing research online.
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UK consumers are becoming more aware of, and concerned about, ethical and sustainability issues. They feel a great deal of societal pressure to do the right thing. As a result, they are taking greater personal responsibility for their actions.
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UK consumers are confident and brand-savvy. They understand the trade-offs between price and quality and are sophisticated value-seekers. They are performance-driven and are more rational than emotional when making purchase decisions.
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There is a growing desire for authenticity, especially in the form of products that have elements of tradition, heritage and superior craftsmanship. UK consumers like products with an interesting back story and are willing to pay a premium for them.
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Chapter 3: Secondary Markets
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Secondary Markets
Trend development Emergent and dynamic growth
Mature and growing
Established and dynamic growth
Established and dynamic growth
Mature and dynamic growth
Emergent and dynamic growth
Mature and growing
Mature and growing
Mature and growing
Mature and growing
Emergent and dynamic growth
Mature and growing
Established and dynamic growth
Mature and dynamic growth
Established and dynamic growth
Established and growing
Established and growing
Mature and growing
Mature and growing
Established and dynamic growth
Established and growing
Established and growing
Mature and growing
Established and growing
Established and dynamic growth
Emergent and growing
Emergent and growing
Mature and dynamic growth
Established and growing
Mature and dynamic growth
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France France is an advanced consumer society, so the trends are either well-established or mature there. However, French consumers are different from consumers in other advanced markets. They resist some of the forces of globalisation and fight to protect their traditional way of life. Protectionist policies have maintained France’s distinctiveness, and this has been a source of national pride. Nevertheless, the recent weakening of the economy and high unemployment are driving the need for modernisation, thus creating significant tensions.
Struggling with modern pressures, but refusing to adapt French consumers are feeling the impact of their increasingly fastpaced and complex lifestyles. Despite this, and unlike the Spanish and Italians, the French are not looking for ways to cope with the pressures of modern life; they are looking for ways to simplify their lives. Similarly, there is a growing awareness of the negative impact of modern lifestyles on health and wellness. However, unlike the Italians, French consumers resist altering their traditional methods in the Quest for Health and Wellness and remain focused on their broader and more indulgent definition of “wellbeing.” The French are also becoming more aware of, and concerned about, ethical and environmental issues. They recognise the need to take personal responsibility for environmental problems, and they acknowledge that science and technology will not solve all environmental problems.
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French Heritage Ricard’s advertising campaign taps into national pride and targets those consumers who want to drink genuine French “Pastis” not a poor foreign imitation.
23% of the French will “try health remedies from other countries or cultures” compared with the survey average of 35% Source: Global MONITOR 2008
France Sophisticated and smart shoppers The proliferation of products and services available in France’s advanced retail marketplace has made consumers sophisticated and brand-savvy. Luxury, exclusivity and trendiness hold surprisingly little appeal, except perhaps to those more cosmopolitan consumers in Paris and other urban centres. They are also self-assured and able to make their own purchasing decisions rather than relying on brands for choice editing. Like consumers in other advanced markets, French consumers are becoming more demanding. They want good quality at a fair price, and they are also extremely pricesensitive, are always looking for the least expensive option and are less likely than the Spanish to trade up or down.
Summary: •
French consumers remain fairly traditional in both their attitudes and behaviour. Culture, heritage and family values continue to play important roles in French society.
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The French lag behind the Spanish in terms of ethics and sustainability. Despite feeling a sense of responsibility to do good, they feel that their personal choices are unlikely to make a difference, compared to the actions of others.
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French consumers are savvy, sophisticated, extremely priceconscious and not easily seduced by luxury, exclusivity or the latest trends. They are also becoming increasingly demanding and place great emphasis on getting good quality at a cheap price.
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Wine Shots These sweet and classic wines come in 6cl or 10cl tubes, which provide novices with a low-cost way to try wine of a particular variety or from a particular region.
68% of French consumers say that “price is more important to [them] than brand names” compared with the survey average of 52% Source: Global MONITOR 2008
Germany With a plethora of products and services available to them, Germans are savvy and demanding consumers. German consumers are also seeking fun and interesting ways in which to get release from their pressurised and busy modern lifestyles. Germany is also amongst the most liberal societies surveyed, and there is a strong sense that consumers there want to move forward with the times and let go of their history and past. However, German consumers maintain a highly rational approach to consumption, having a high regard for quality and functionality and a keen eye for value.
In control of life Given that Germany is an economically advanced and modern society, it is not surprising that the pace of life there is fast. Consumers have many demands on their time. However, unlike other developed markets, Germans are not and do not appear to be stressed out, and they seem to be on top of their busy lives. Germans tend to be rational shoppers; getting good quality at a good price is more important than a famous brand name, style or design. This attitude may be a lingering legacy of almost a decade of a relatively difficult economy. Product tests and reviews are commonplace across sectors, and are often used as a guide to consumers at the point of sale. German consumers behave much like consumers in Mediterranean markets in their Quest for Health and Wellness - relying for the most part on traditional health and wellness strategies. Germans value “‘folk”’ remedies, and they trust their doctors and the efficacy of Western medicine. Germans do not feel pressured to be more healthconscious and are not interested in doing more to manage their health and wellness. ©The Futures Company, Bord Bia 2009
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64% of German consumers say that “using products and services that offer the greatest convenience” is important (compared to the survey average of 51%) Source: Global MONITOR 2008
78% of German consumers agree, “I am always pushing for better quality and value from companies, even when buying everyday products” (compared to the survey average of 62%). Source: Global MONITOR 2008
Germany Open to change German consumers are more open to embrace the new and leave the past behind is seen in the way Keeping It Real is being played out. Unlike most developed markets, authenticity for these consumers is less about celebrating traditions, cultural heritage or history and more about a desire for trust, transparency and continuing quality. There is still a great value placed on traditional tastes and reliable German products and brands that have withstood the test of time at home and abroad. German consumers have a strong awareness and understanding of green and ethical issues. They are among the world’s most active environmentalists — recycling, buying local and looking for ways to conserve energy.
Summary: •
Germans want control of their busy lives and, for the most part, feel they have taken the necessary steps to be in control.
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Germans may approach life in a very rational way; however, they also love to have fun and have new experiences.
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Yet a heavy focus on conventional wellbeing strategies and on the importance of traditional communities suggests that Germany still remains traditional in some areas.
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German consumers are environmentally conscious and have been demonstrating green behaviours for many years.
Support the Local Environment Bionade supports local farmers by guaranteeing to buy 100% of the yield from farmers who convert their operations into organic farms.
51% of German consumers say, “I worry that aspects of our culture and traditions are being lost as the world converges into a single global culture” (compared to the survey average of 61%). Source: Global MONITOR 2008
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Italy The large majority of the Consumer Lifestyle Trends are wellestablished in Italy, a fairly advanced consumer society. However, the interplay of the trends in Italy is unique. In some ways, Italians are similar to their Mediterranean neighbours France and Spain; however, in other ways, they appear closer to consumers in the emerging markets. This dichotomy reflects both Italy’s position as a developed European market and its conservative culture heavily influenced by more traditional authorities such as the Catholic Church, family etc. Italy is changing, but it remains a land of cherished customs and timeless rhythms.
Traditional values remain strong Much like the Spanish and the French, Italians hold their history dear, local customs and traditions. However, continued economic development and globalisation pose a growing threat to their unique way of life, and Italian consumers are becoming more concerned that their culture is being lost. The trend Keeping It Real resonates powerfully in Italy because, as consumers, Italians place great emphasis on craftsmanship, sense of style and provenance. This is reflected in the kinds of products they buy, the quality of the ingredients, where the products are made, who made them and the story behind them. In contrast to other developed markets, they are also looking for better balance in their lives and, many stated they would be willing to take a lower-paying job to achieve this goal. Italians have always understood the importance of emotional wellbeing, and they appear to welcome health and wellness products from other countries and other cultures that might make their lives better.
Traditional Food This pasta is made from a traditional durum wheat using traditional bronze rollers. The unique history of this family brand is detailed on the packaging.
56% of Italian consumers are enthusiastic about “buying products that have a sense of history or tradition about them” (compared to the survey average of 48%). Source: Global MONITOR 2008
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Italy A very particular kind of consumers While getting a cheap price is important to Italians, luxury is more important to them than consumers in many other developed markets. They do not understand, nor will they tolerate, the need to sacrifice quality or style, to get a lower price. Italy is one place in the world where sophisticated consumers are in control, and it is incumbent on marketers to understand their consumer’s emotional as well as functional needs and wants. Awareness and concern about a range of social and environmental issues are causing Italians to take a more ethical and sustainable approach to their lifestyles. Making a Difference is important to these consumers. But Italians remain confused about sustainability and feel unsure about what they can do to help. Consequently, they still lag behind markets such as the UK and Spain.
Summary: •
Italian consumers have a continuing strong interest in history, tradition and provenance, and this is reflected in their interest in authentic products.
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In the area of health and wellness, consumers are beginning to make more use of modern remedies as well as new technology in the form of the internet.
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Italians are savvy, sophisticated consumers and should be treated as such.
SMS Price Tracking As food prices rise, consumers can track food prices via SMS.
48% of Italian consumers say that they “usually choose the cheapest products available” (compared to the survey average of 41%). Source: Global MONITOR 2008
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Awareness and concern around ethical and sustainability issues have increased; however, Italian consumers remain confused about the best way to go about Making a Difference.
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Spain Spain demonstrates a characteristic profile of a fairly advanced consumer society — all of the Consumer Lifestyle trends are either established or mature. However, Spain is not like its neighbours in the rest of Europe, and it is evolving differently. In the last quartercentury, Spain has been transformed from a rather sleepy economy into a modern, open and fast-moving economy populated by increasingly savvy consumers and shoppers with discerning tastes.
Change welcomed, but not at the expense of tradition Rapid economic growth in recent years has opened up a wealth of opportunities for Spanish. Since the early-mid 1990s Spain’s economy has grown rapidly and unemployment fell well below 10% from a level that was once above 20%. As a result, Spain’s living standards are now higher than Italy’s. Spanish consumers feel the threat of globalisation and rapid development on their traditional way of life. While they embrace opportunity and change, they are also increasingly concerned about the potential impact on their culture and traditions, as seen in the way they embrace the trend Keeping It Real. Spaniards are proud of their unique culture, which exists on both national and regional levels, and are doing everything they can to maintain and support it. Traditional social values also remain strong and continue to define social interactions and personal relationships. Spain lags behind the most advanced consumer societies as a result of the continued influence of traditional norms and institutions such as the church and family. Similarly, traditional values and practices continue to define many attitudes and practices in relation to the Quest for Health and Wellness. ©The Futures Company, Bord Bia 2009
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Local Food Food retailer Caprabo is promoting foods from Catalonia
62% of Spanish consumers say that “the pace of life is too fast for me these days” (compared to the survey average of 51%). Source: Global MONITOR 2008
Spain High consumer concern around sustainability It may come as a surprise to some that Spanish consumers demonstrate a high level of awareness of, and concern about, environmental and sustainability issues. They are increasingly active in this area, making personal sacrifices and trade-offs in their everyday lives. This focus on the environment puts the Spanish close to the most mature group of markets in relation to Making a Difference. They are also sensitive to the impact that climate change and water shortages are having on their lives and their livelihoods, especially in an economy where agriculture and tourism are so important. Spain is the third-largest global wine producer and the fourth-largest global producer of both citrus fruits and barley. More than half of Spanish soil is devoted to agriculture, global climate change pose very real threats to the Spanish.
Summary: •
Spanish consumers want their lives to be a blend of the best of today and the joys of yesteryear — progress and tradition, hand-in-hand.
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The Spanish are savvy consumers who are not seduced by luxury and exclusivity. They are more demanding and valueseeking than the French and Italians.
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However, traditions remain important in their lives. This is reflected in their strong desire for products that celebrate and preserve their cultural heritage.
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There is high awareness of, and concern about, environmental and sustainability issues.
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Urban Trash Safari New urban sport where people go out on weekly missions to hunt, reuse and restore useful stuff others throw away.
Spaniards are the most likely of all markets to agree with the statement, “I feel bad about not being as environmentally conscious as I would like to be” (63%, compared the survey average of 47%). Source: Global MONITOR 2008
USA America is once again a nation in transition. A fundamental shift has begun to transform the way Americans live their lives, and as it develops, it is redefining the American dream. The dominant forces of self-reliance and personal empowerment that defined American life in the 1990s and in the first years of the 21st century are beginning to morph into the a marketplace defined by greater responsibility. They are seeking ways to find common ground and have begun to move beyond a “me first” sense of entitlement. They are assuming more responsibility for their actions and are seeking opportunities to “live their values” in ways that promote the common good.
A new responsibility marketplace begins to take shape Today, Americans remain self-confident and self-reliant; they continue to believe in themselves and are both savvy and smart when it comes to how they shop, what they buy, where they buy and why they buy. Fueled by the Internet, consumers took control of the marketplace and demanded — successfully — that marketers and producers make the products that they wanted. The result: the consumer-driven marketplace of today that is manifested in the Smart Shopper trend. However, consumer attitudes are moving from inner-directed to other-directed. The shift from “me” to “we” becomes most evident in the growing importance of the trend Making a Difference. This trend is about the willingness and desire to support social and environmental initiatives that require a personal commitment.
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“Responsibility: What’s your policy?” A website where consumers can watch short films, read about and share their thoughts on what it means to do the right thing.
71% of Americans agree with the statement, “I feel I can make a difference to the world around me through the choices I make” compared to the survey average of 60%). Source: Global MONITOR 2008
USA True authenticity is beginning to define the new American marketplace America is coming off almost two decades of bingeing and excess: “McMansions” (homes that are excessively large), living beyond their means (driven in part by the housing boom), an obsession with luxury brands and the widely held view that more of everything is better. Even before the recent surge in oil prices and the meltdown in financial markets, Americans had begun to react against the excesses of the past few decades. Already, they had begun to push back on all the dubious advertising, the half-truths from manufacturers and politicians, and the inauthentic masquerading as the “real”. Authenticity, truth, quality, heritage—genuine and real— all are qualities that Americans increasingly look for in the products they buy and the companies with which they do business.
Home production My Farm is a cooperative urban farm that grows vegetables in backyards throughout San Francisco.
Summary: •
The United States is an advanced consumer society that is well into the evolution to a post-materialistic society.
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The focus on self is diminishing, and the focus on the needs of the larger community is growing stronger. American consumers have begun to take ownership of the pressing social, environmental and personal problems they face. As a result, they are taking steps to solve their own problems.
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The concepts of “real” and “authentic” are growing in importance in the American marketplace—not just more, but better. Quality, heritage, genuineness, truth and transparency are more valued today than at any time in the recent past.
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82% of Americans say that they “appreciate it when companies make it clear what they stand for and stay true to their values”. Source: Global MONITOR 2008
Chapter 4: Cultural Closeness
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Cultural Closeness Introduction The best way to guard against a mismatch of global and local targeting is to identify markets that are similar and then employ a common overarching strategy that is sensitive to local differences in the execution of that strategy. The Futures Company using their global trends survey, Global MONITOR have identified cultural territories by performing a correspondence analysis that plots each country with respect to all the trends and with respect to every other country. This enabled the identification and actionable understanding of the dimensions aligning countries relative to one another.
Correspondence analysis is a method of factoring categorical variables and displaying them in a property space which maps their association in two or more dimensions. Correspondence analysis has been popular in marketing research, as it displays such variables as customer attitudes and behaviours in relation to each other.
Where does Ireland sit:
The findings The analysis highlighted a number of country groupings that are best explained through 3 differentiating factors within the analysis: –Materialist vs. Post-Materialist Values –Free vs. Constrained Identity –Full-on vs. Moderate Lifestyles For the countries discussed in this report three category groupings are relevant: –Anglophone Countries: Post Materialist, Free Identity and Fullon Life Styles –Catholic Europe: Post Materialist, Free Identity and (more) Moderate Styles –Northern Europe: Post Materialist, Free Identity and (more) Moderate Styles ©The Futures Company, Bord Bia 2009
About the analysis:
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The analysis highlights that Ireland most closely sits within the Catholic Europe cluster. However, the dividing line with the Anglophone countries is marginal. Consequently, the analysis highlights that there are a number of common linkages with the countries discussed in this report. The important consideration for marketers is to play to the right commonalities in each market to ensure success. This differs by cluster This is explored in the remainder of the chapter
Anglophone Countries Countries:
Key Trends
Common Characteristics
Marketing Implications
Smart shoppers
Many sources of brand value such as convenience, brand name, luxury and novelty have become hygiene factors.
To hold premium positioning brand must have rich and engaging offers. Superficial executions will be quickly unmasked.
Notions of value are sophisticated and extend beyond just price and product performance. Life-on-the go
The fast pace of life is seen as given in these markets. Consequently, convenience has become a hygiene factor and is not a source of competitive advantage. Some consumers will be open to brand and products that encourage or reflect a slower way of life; playing a role in providing some respite from the pressured feeling created by the pace of life in these countries.
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Primary positioning of products need to extend beyond a convenience positioning to ensure relevant differentiation. Brands that encourage consumer slow down for a moment in their lives will resonate.
Anglophone Countries Countries:
Key Trends
Common Characteristics
Marketing Implications
Keeping It Real
These countries are looking to rediscover their roots and more traditional ways of life. This is fuelled by a desire for greater openness in product sourcing and production.
Brand that play to their traditions and heritage (whether local or not) are likely to receive stronger interest in these markets in the future.
The interest is in what is ‘authentic’ rather than an attachment with local cultural heritage and traditions.
In the current environment, keeping sight of these qualities is critical in terms of promoting the true value of brands and products.
Living Life to Full
These cultures actively seek new experiences and to broaden their horizons.
Food can be a strong area of experimentation within these cultures. Playing to the a sense of adventure through food can be effective in these markets.
Making a Difference
Growing environmental concern is a strongly emerging theme and consumer response is primarily likely to be reflected through purchase choice.
These issues are unlikely to be the primary reasons driving brand and product choices. However, they are likely to increasingly provide a point of difference and may rapidly become a hygiene factor for consumers in these markets.
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Catholic Europe Countries Countries:
Key Trends
Common Characteristics
Marketing Implications
Life-on-the go
The quickening pace of life is as a challenge in these markets, and unlike the Anglophone markets, they are searching harder for relief, even an exit strategy.
Convenience still offers an emergent opportunity in these markets and could provide relevant differentiation. Brands that talk to slower way of living will also resonate.
Making a Difference
Environmental concern is an emerging theme but consumer response is limited. With the exception of Spain, many of these issues are yet to become a primary source of concern.
Concerns will begin to reflect more strongly in consumers choices. However, the current context means that a positioning primarily built around these values is unlikely to gain significant traction.
Smart Shoppers
Value and good prices are preferred over strong brands.
Maintaining premium positioning through branding is likely to be challenging in these markets.
Keeping It Real
This is a strong connecting theme of all the markets. A desire to remain connected to tradition (of which food is a primary component) is strong. However, it is very much about local traditions.
Irish heritage may not be seen as appealing as local alternatives.
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Northern Europe Countries Countries:
Key Trends
Common Characteristics
Marketing Implications
Life-on-the go
Being in control of their lives is culturally very important, and consumers in these markets are seeking strategies to help them manage their busy lifestyles.
Convenience still offers an emergent opportunity in these markets and could provide relevant differentiation.
Making a Difference
Environmental concern is a strong theme and more embedded into the way consumers approach the market place. There is an inherent expectation that companies are addressing these issues.
These concerns do reflect more strongly in consumers choices today. Successful brands can be built on this positioning.
Keeping It Real / Smart Shoppers
The connection with tradition is very different in Germany, here it represents quality and craftsmanship rather than a definer of national identity.
Brands and products that play to the way that traditional processes and ingredients lead to quality are likely to gain traction in these markets. Heritage, tradition and artisan skills are a means to define ‘good value’ in this market.
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Appendix: Information sources
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Methodology for Global Monitor study •
Sample Size –
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31,287 respondents, ages 16 and older, across 18 different countries.
Countries The study includes countries from five regions of the world: ü North America: U.S. and Canada ü Europe: U.K., France, Germany, Ireland, Italy, Poland, Russia, Spain, Sweden ü Asia: China, India, Japan, Turkey ü Latin America: Brazil, Mexico ü Oceania: Australia
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In field Timing –
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Between May 15 and July 21, 2008.
Data-collection method for the quantitative element – –
Web-based, self-administered surveys. In Poland, Turkey, Brazil, Russia, Mexico, India and China, we combined a Web-based methodology with in-person, face-to-face interviewing to ensure key demographic groups where reached.
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Methodology for Global Monitor study
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Global Streetscapes
A global urban network of culturally connected individuals who gather trends intelligence from around the globe to provide strategic and creative direction for companies, brands and agencies.
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Global Streetscapes is a qualitative / observational trend offering designed to complement and bring-to-life the vast amounts of quantitative data and insights gathered through Global MONITOR, providing visual examples of key trends in the global marketplace.
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With an extensive network of Streetscapers in 46 cities around the world, including 12 U.S cities, Global Streetscapes is designed to put us in touch with the changing needs and behaviours of our consumers.
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For further information •
For further information about Bord Bia’s Consumer Lifestyle Trends Programme and this report, please contact the Information Services Enquiry team – Tel: +353 1 668 5155 – Email:
[email protected]
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More in-depth content for all the trends and a copy of this report is available on the Bord Bia web site; www.bordbia.ie
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